Order intake in mechanical engineering June 2019
by Hans Diederichs
In the first six months of the current year, machine builders in Germany recorded a significant drop in their order books. In the first half of 2019, they recorded a 9 percent decline in orders in real terms compared with the previous year, with the decline being the same in Germany and abroad. "This decline is attributable to the weaker global economy, the numerous mostly politically motivated upheavals and the far-reaching structural change in the automotive industry," explained VDMA economic expert Olaf Wortmann.
In June 2019, incoming orders in the German mechanical engineering sector fell short of the previous year's level by 5 percent in real terms. While domestic orders fell by 16 percent in the month under review, orders from abroad were able to maintain their already high level of the previous year. "The number of major orders from non-euro countries is surprising. It was already high in June 2018 and has now risen again, resulting in an increase of 2 percent in orders from non-euro countries. It is extremely rare that an already high level of the previous year can be maintained, let alone expanded, for large-scale plants," said Wortmann. In the euro zone, on the other hand, machine builders recorded a 9 percent drop in orders in June.
In the three-month period from April to June 2019, the weakening mechanical engineering economy was also evident, with orders down 8 percent on the previous year. Domestic orders fell by 12 percent, while foreign orders fell by 6 percent. Orders from the Euro countries shrank by 7 percent, 5 percent fewer orders came from non-euro countries.
Source and photo: VDMA